Slide 1: Ally Financial Inc. 4Q Earnings Review
Ally Financial Inc. 4Q Earnings Review Contact Ally Investor Relations at (866) 710 - 4623 or investor.relations@ally.com February 5, 2013
Slide 2: Forward-Looking Statements and Additional Information
2 4Q 2012 Preliminary Results Forward - Looking Statements and Additional Information The following should be read in conjunction with the financial statements, notes and other information contained in the Compa ny’ s Annual Reports on Form 10 - K, Quarterly Reports on Form 10 - Q, and Current Repor
Slide 3: Ally Momentum – 2012 Key Accomplishments
3 4Q 2012 Preliminary Results Ally Momentum – 2012 Key Accomplishments x Full year 2012 net income of $1.2 billion vs. $157 million loss in 2011 – Full year core pre - tax income, excluding ResCap and repositioning items (1) , of $1.1 billion in 2012 vs. $865 million in 2011 x Strong and growing pre
Slide 4: Strategic Transformation – International Sale Update
4 4Q 2012 Preliminary Results International Entities Summary (1) ($ billions) Business Assets Tangible Book Value (2) Proceeds (3) Premium to TBV ABA Seguros 0.9$ 0.3$ 0.7$ 0.4$ Canada (4) 12.6 3.3 3.9 0.6 Europe, Latin America and China JV 17.6 3.5 4.1 0.5 Total 31.0$ 7.0$ 8.6$ 1.6$ Strategic Trans
Slide 5: Strategic Transformation – Mortgage Update
5 4Q 2012 Preliminary Results Strategic Transformation – Mortgage Update ResCap • Bankruptcy process continues to move forward – Asset sale to Walter closed on January 31 ▪ Asset sales to Ocwen and Berkshire Hathaway expected to close in coming weeks ▪ Sales expected to generate $4.4 billion in aggr
Slide 6: Ally Momentum – U.S. Auto Finance
6 4Q 2012 Preliminary Results Ally Momentum – U.S. Auto Finance • Demonstrating success of dealer - centric strategy in competitive environment – Premium Service Model – Comprehensive Product Offering – Infrastructure Scale and Breadth – Unrelenting Long Term Industry Focus • Diversified product off
Slide 7: Auto Finance – Dealer Centric Strategy
7 4Q 2012 Preliminary Results Auto Finance – Dealer Centric Strategy • Premium Service Model – Setting the bar for the industry service standard – Compete on full value of products and services – Innovative and tailored product offerings for dealers and OEMs • Comprehensive Product Offering – Full s
Slide 8: Ally Momentum – Ally Bank Deposits
8 4Q 2012 Preliminary Results Ally Momentum – Ally Bank Deposits • Successfully built a leading brand in the new era of consumer banking – Customer - centric franchise well positioned in the direct banking market – Stable and growing deposit book and loyal customer base – Foundation of innovative, c
Slide 9: Ally Momentum – Strengthening Credit Profile
9 4Q 2012 Preliminary Results Ally Momentum – Strengthening Credit Profile • Commitment to strong financial profile – More stable earnings profile expected – Strong capital and liquidity position – Low loss, short - dated balance sheet – Improved credit ratings are a priority • Strategic transformat
Slide 10: Fourth Quarter and Full Year 2012 Results
10 4Q 2012 Preliminary Results ($ millions) 4Q 12 3Q 12 4Q 11 FY 2012 FY 2011 Net financing revenue (ex. OID) 667$ 549$ 455$ 2,228$ 2,036$ Total other revenue (ex. OID) 629 774 590 2,595 2,338 Provision for loan losses 92 105 (30) 328 161 Controllable expenses (1) 592 548 590 2,222 2,105 Other nonin
Slide 11: Ally Financial - Net Interest Margin
11 4Q 2012 Preliminary Results Ally Financial - Net Interest Margin $119 $132 $135 $136 5.30% 4.31% 4.42% 4.52% 1.70% 1.25% 1.60% 1.91% 3.66% 3.18% 2.95% 2.71% 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Average Earning Assets ($B) Earning Asset Yield NIM (ex. OID) Cost of Funds (ex. OID) Net In
Slide 12: Asset Quality
12 4Q 2012 Preliminary Results (30+ DPD) $682 $783 $543 $689 $836 $1,073 1.58% 1.68% 1.10% 1.36% 1.59% 2.00% 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Delinquent Contracts ($M) Delinquency Rate Consolidated Annualized Net Charge - Offs Reserve Coverage of Net Charge - Offs Asset Quality U.S. Retail Auto A
Slide 13: Pre-Tax Income by Segment
13 4Q 2012 Preliminary Results Pre-Tax Income ($ millions) 4Q 12 3Q 12 4Q 11 FY 2012 FY 2011 Automotive Finance 371$ 337$ 285$ 1,389$ 1,333$ Insurance 27 13 80 160 316 Dealer Financial Services 398$ 350$ 365$ 1,549$ 1,649$ Mortgage Operations 100 330 101 639 160 Corporate and Other (ex. OID) (1) (19
Slide 14: Automotive Finance – Key Financials
14 4Q 2012 Preliminary Results Key Financials ($ millions) 4Q 12 3Q 12 4Q 11 Net financing revenue 776$ 728$ 561$ Total other revenue 58 75 83 Total net revenue 834 803 644 Provision for loan losses 59 101 (29) Noninterest expense 404 365 388 Pre-tax income 371$ 337$ 285$ Total assets 128,411$ 123,2
Slide 15: Auto Finance – Key Metrics
15 4Q 2012 Preliminary Results ($ billions) $68.2 $70.3 $73.0 $74.5 $75.3 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 On Balance Sheet Sold ($ billions) $29.3 $30.2 $31.8 $30.6 $32.5 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 (% of $ originations) 5% 5% 25% 23% 27% 19% 29% 29% 15% 24% 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 New Subvent
Slide 16: Insurance – Key Financials
16 4Q 2012 Preliminary Results Key Financials ($ millions) 4Q 12 3Q 12 4Q 11 Insurance premiums, service revenue earned and other 267$ 268$ 292$ Insurance losses and loss adjustment expenses 117 90 85 Acquisition and underwriting expenses 157 144 178 Total underwriting income (7) 34 29 Investment in
Slide 17: Mortgage Operations – Key Financials
17 4Q 2012 Preliminary Results Key Financials - Ex. ResCap ($ millions) 4Q 12 3Q 12 4Q 11 Net financing revenue 39$ 44$ 60$ Gain on sale of mortgage loans, net 131 139 60 Other revenue (excluding gain on sale) 125 306 92 Total net revenue 295 489 212 Provision for loan losses 32 5 18 Noninterest exp
Slide 18: Ally Bank Deposit Levels and Retail Accounts
18 4Q 2012 Preliminary Results Ally Bank Deposit Levels and Retail Accounts ($ billions) $27.7 $29.3 $30.4 $32.1 $35.0 $37.6 $39.2 $40.3 $42.0 $45.0 977 1,036 1,083 1,143 1,220 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 Ally Bank Retail Ally Bank Brokered # of Retail Deposit Accounts (000s) Ally Bank Deposit Fra
Slide 19: Ally Bank Customer Satisfaction and Brand Loyalty
19 4Q 2012 Preliminary Results Ally Bank Customer Satisfaction (Quarterly Average) (1) 90% 90% 93% 94% 1Q 12 2Q 12 3Q 12 4Q 12 Strong Ally Bank Brand Loyalty Consistent growth in customer transactions Customer satisfaction at all - time high CD retention rates at all - time quarterly high Quarterly
Slide 20: Ally Financial Liquidity Position
20 4Q 2012 Preliminary Results Ally Financial Liquidity Position ($ billions) $26 $16 $13 $7 3Q 12 4Q 12 Parent Co. Liquidity Unsecured Bond Maturities (next 24 months) Ally Financial Consolidated Unsecured Long-Term Debt Maturity Profile ($ billions) $0.3 $0.1 $0.1 $0.9 $5.6 $5.1 $2.0 $3.7 $16.7 1Q
Slide 21: 2013 Priorities
21 4Q 2012 Preliminary Results 2013 Priorities • Complete strategic transformation and capitalize on momentum created in 2012 • Continue to create significant value for our auto dealers – Comprehensive products and services – Continue to innovate – Focus on expanding profitable dealer relationships,
Slide 22: Supplemental Charts
Supplemental Charts
Slide 23: Corporate and Other – Key Financials
23 4Q 2012 Preliminary Results Key Financials ($ millions) 4Q 12 3Q 12 4Q 11 Net financing loss (1) (170)$ (237)$ (183)$ Total other revenue 36 21 29 Total net loss (ex. OID) (134) (216) (154) Provision for loan losses 1 (1) (19) Noninterest expense (2) 55 86 152 Core pre-tax loss (190)$ (301)$ (287
Slide 24: Capital
24 4Q 2012 Preliminary Results Capital • Capital ratios declined in 4Q primarily driven by higher commercial asset balances – Net income benefit of valuation allowance release offset by an increase in regulatory disallowed deferred tax assets (DTA) – International asset sales will reduce risk - weig
Slide 25: Impact of Discontinued Operations
25 4Q 2012 Preliminary Results Impact of Discontinued Operations ($ millions) 4Q 12 3Q 12 4Q 11 Canada 25$ 34$ 68$ International Auto 86 91 31 Insurance 38 13 26 Mortgage - - (5) Corporate and Other 110 65 59 Consolidated pretax income 259$ 203$ 179$ Tax expense (benefit) 159 41 66 Consolidated net
Slide 26: Liquidity Supplemental
26 4Q 2012 Preliminary Results Liquidity Supplemental (1) Parent company liquidity is defined as our consolidated operations less Ally Bank, ResCap (deconsolidated as of 5/14/12) and les s the subsidiaries of Ally Insurance Holding Company (2) Includes UST, Agency debt and Agency MBS (3) Includes eq
Slide 27: Notes on non-GAAP and other financial measures
27 4Q 2012 Preliminary Results Notes on non - GAAP and other financial measures Supplemental (1) Core pre - tax income (loss) and controllable expenses are non GAAP financial measures. See slide 29 for definitions $ in millions GAAP OID & Repositioning Items ResCap Related Adjustments Proforma GAAP
Slide 28: Notes on non-GAAP and other financial measures
28 4Q 2012 Preliminary Results Notes on non - GAAP and other financial measures Supplemental (1) Core pre - tax income (loss) and controllable expenses are non GAAP financial measures. See slide 29 for definitions $ in millions GAAP OID & Repositioning Items ResCap Related Adjustments Proforma GAAP
Slide 29: Notes on non-GAAP and other financial measures
29 4Q 2012 Preliminary Results Notes on non - GAAP and other financial measures Supplemental 1) Core pre - tax income (loss) is a non - GAAP financial measure. It is defined as income (loss) from continuing operations before taxes and primarily bond exchange original issue discount ("OID") amortizat